READ THE SCENARIO BELOW AND ANSWER THE QUESTIONS THAT FOLLOW.

The ABC International Bank which is a banking organisation headquartered in South Africa and with operating branches in all the nine provinces of South Africa and across the world has been struggling to get its investment options in the right portfolios, especially when it comes to its international operations. To improve its investment options, the Bank has identified two projects from which one needs to be selected.

Project $1$ was intended to improve its clients$$ banking experience by ensuring that all the customers that are registered as business organizations receive a mobile banking device that will allow their non$-$cash carrying customers to use their debit or credit cards to pay for goods and services. This project was also in direct line with the bank$$s strategy of satisfying its customers and increasing its customers$$ base.

Project $2$ was intended to support its executives by giving them additional personal assistants $($PAs$)$ when travelling across South Africa and abroad. This project was also intended to improve the marketing position of the organisation and improve the communication between the executives and the head office.

The two projects were to be selected by combining different project selection methods, only the financial data are made available to you and the bank wants you to help in the selection process. It is important to note that the company$$s culture is to give priority to projects that have the highest return on capital invested. Both projects are subject to a $7\%$ discount rate. Project $1$ development cost is projected to amount to R$1200000,$ this amount includes R$250000$ which is to be used for initiation meeting with the developers. To maintain the devices, the organisation was expected to spend R$100000$ in the first year of the implementation, then maintenance costs are expected to increase annually by $5\%$ for the next three years. Project $1$ was expected to make a return of $50\%$ of the total development cost in its first year after implementation, and then the return would decrease by $10\%$ per year for each of the remaining years. Project $2$ was to cost R$800000,$ this amount excludes the R$100000$ which was used to pay for labour consultants who assisted with the interviews. The additional cost was that of training of the PAs which was about R$75000$ in the first year, then the cost was expected to increase annually by $10\%$ for the next three years. Project $2$ was expected to make a return of $50\%$ of the total development cost after its first year of implementation, and then the return could decrease by $10\%$ per year for the rest of the years.

QUESTION $[30$ MARKS$]$

Given information provided in the opening case above::Complete the table below by selecting the appropriate corresponding answer FOR THE FIELDS$/$BOXES NUMBERED $1$ TO $30$ and calculate the NPV $($BOX $30)$ of Project $2.$ In your calculation $,$ give and use the Discount Factor rounded off to $3$ decimal places. Monetary values must be given to the nearest cent and select the nearest answer from the provided options. $[15]$

PROJECT $2$

YEAR $0$

YEAR $1$

YEAR $2$

YEAR $3$

YEAR $4$

TOTAL

BENEFITS

$1$

$2$

$3$

$4$

$5$

$6$

COST

$7$

$8$

$9$

$10$

$11$

$12$

NCF

$13$

$14$

$15$

$16$

$17$

$18$

Discount Factor

$19$

$20$

$21$

$22$

$23$

Discounted Cash Flow

$24$

$25$

$26$

$27$

$28$

$29$

NPV

$30$